The announcement comes a month after rival Verizon Communications (NYSE: VZ) completed its $1.4 billion acquisition of Terremark Worldwide of Miami, which is another major player in the cloud computing segment.

AT&T Inc. (NYSE: T) has more than 4,000 employees in Wisconsin. Between 2007 and 2009, AT&T executives said the company has spent nearly $900 million to enhance wireless and wired networks in Wisconsin.

AT&T's investment is part of its previously announced $19 billion capital budget for 2011. The company said it intends to invest in five key areas – such as enterprise mobility applications and cloud-as-a-service enhancements – while also rolling out platforms, systems and e-capabilities to automate and simplify services for business customers.

AT&T is targeting its investment to companies, government agencies and institutions in industries such as manufacturing, retail, hospitality, health care and automotive.

“We continue to invest significantly in cloud-based, mobility and network sourcing solutions because customers are increasingly recognizing that transformative services like these increase productivity, improve operational effectiveness and lower costs, ” said John Stankey, president and CEO of AT&T Business Solutions, in a statement.

The company said revenue from these services increased 18 percent in the first quarter ended March 31.